Subsidies, market access threaten farmers' livelihood

31^st October 2006

Staff Reporter

Conference on NAMA meant to help identify products of concern to India

CHENNAI: Subsidies and market access barriers in the international trade of agricultural commodities threatened the livelihood of farmers in developing countries, Textiles Minister E.V.K.S. Elangovan said on Monday.

Speaking at the regional conference on `WTO Agriculture and Non-Agriculture Market Access (NAMA) negotiations', he said, "It is our sincere wish that the issue is addressed at the Doha round of negotiations (WTO) which are underway."

Organised by the Textiles Committee, in association with the Ministry of Commerce and Industry and United Nations Conference on Trade and Development (UNCTAD) India, the conference was meant to help identify products of concern to India. The workshop was part of a series of `Regional stakeholder consultation workshops'.

Mr. Elangovan said farmers in countries like India were not able to compete with the `artificial' low prices caused by heavy subsidies given in developed countries. Subsidised exports also exposed farmers of developing countries to unfair trade competition in their exports, he added.

Stakeholders such as exporters and members of farmers associations were given an opportunity to give suggestions regarding products to be included in the `sensitive list'.

(The World Trade Organisation allows all countries some amount of flexibility in the way these products are treated.)

Veena Jha, coordinator, UNCTAD India said the focus would be on products such as spices, oil-seeds, edible oils and tobacco. Non-agricultural commodities, marine products, textiles, clothing, leather and plastics would be considered.

She said stakeholders sought tariff protection for certain types of fish to tackle the pressure of having to compete with imported varieties.